Web: Square acquires predictive analytics startup Framed Data

March 2016 by: From The Web

Square is acquiring the team behind Framed Data, a predictive analytics service, and will be deploying the team of data scientists to its Square Capital team.


Square tracks merchants’ transaction history through its services in order to better determine their eligibility for loans through Square Capital. There are certainly a lot of requirements around the analytics part of the service — Square has to do a detailed risk analysis for each customer and determine at what rate they are going to be paying back their loans.


So it makes sense that the team would naturally be attractive to Square for its Square Capital product. The better a tool like Square Capital operates, the more attractive it is to merchants over traditional tools. And if Square Capital becomes a go-to for small businesses, they’ll be more likely to use other Square products — helping Square continue to grow its business across the board.


Square is not acquiring Framed Data’s technology as part of the arrangement. The Framed Data product will be shut down at the end of the month.


Prior to being acquired, Framed Data served as an analytics engine that helped its customers understand user behavior. It would basically look at what users are doing and then make predictions — such as how many interactions are required in an app before a user makes their first in-app purchase. Framed Data previously raised $2 million in seed financing.


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